S Corporation Basis: If you’re an S corporation shareholder you should plan to be able to utilize tax losses that pass through from the corporation to your personal return. To deduct losses you must have “basis” (investment) in the S corporation to support the loss. If the S corporation borrows money, it won’t increase your…
o Banks and Powers of Attorney: If you’re an agent under someone’s power, say your mom, don’t be surprised if banks, brokerage firms and others give you a hard time trying to manage mom’s assets. They may send the power to their legal department for “review” (read languish). Tips for before: While mom is well,…
Which Assets Go To Which Trusts Under Your Will: Executors (or trustees of your revocable living trust) have to make decisions as to which assets of your estate should be transferred to which trusts (“funding”). The planning opportunities, traps and complications are far greater than most executors, trustees and heirs realize. Let’s take a…
A Qualified Personal Residence Trust (“QPRT”) is an estate planning technique used to leverage a gift of your principal residence or vacation home out of your estate at a significant discount. The technique, when successful (which requires your outliving the term of the trust) can save substantial estate taxes. However, to succeed, you must…